Credit Card Complaints Increase in CFPB’s Latest Snapshot Report
Billing disputes and fraud, identity theft and embezzlement are among the most common complaints that consumers have about their credit cards, according to the CFPB.
Features
States Square off in Fight over CFPB Leadership Structure
The states weigh in on the CFPB leadership structure with two amicus briefs. A group of 17 states, plus the District of Columbia, has sided with the agency as it fights a court ruling that says the president should have the authority to fire the head of the CFPB. Meanwhile, 15 other states have taken an opposing stance.
PIF Seeks Clarity, Exemptions as U.K. Moves toward PSD2
As the U.K. moves ahead with plans to implement the revised Payment Services Directive (PSD2), the Prepaid International Forum (PIF) has asked regulators for more clarification on certain aspects of how the framework will be applied in the country.
Class Action Filed Against Bank over Prison-Release Cards
A proposed class action lawsuit was filed by a former prisoner who claims he had no choice but to receive a prepaid card upon his release instead of the cash he arrived with, minus any card fees he was charged.
Supreme Court Finds N.Y. Surcharge Laws Regulate Speech
The Supreme Court issued a unanimous decision finding that a New York law prohibiting merchants from disclosing surcharges to cover the costs of credit card processing while allowing for discounts in the case of cash transactions regulated speech
Netspend Settles with FTC for $53 Million
Facing charges by the Federal Trade Commission that Netspend deceived cardholders and denied or delayed their access to funds, the TSYS subsidiary agreed to a $53 million settlement, which consists of $40 million on deposit in customer accounts and $13 million in refunded fees. Netspend doesn’t admit any wrongdoing under the terms of the settlement.
Protecting porous perimeters via identity access management
With the growth of “mobile working” and an increasing number of business applications migrating to the cloud, the corporate perimeter has become more porous and vulnerable, driving demand for solutions that manage access and user identities securely and efficiently. This is where identity access management (IAM) technologies come into play. ING’s Sicco Boomsma explores.
U.K. Makes Official Its Intent to Leave EU
A little after noon in Brussels March 29, a British ambassador delivered a letter to EU Council President Donald Tusk that set the wheels into motion for the U.K.’s exit from the EU. Today’s announcement makes official the results of the historic vote June 23, when 52 percent of voters in the U.K. stunned many around the world when they opted to leave, or “Brexit,” as it’s commonly called.
Wells Fargo Settles Account-Scandal Claims but Runs Afoul of Federal Regulator
Wells Fargo will pay $110 million to settle a class action lawsuit brought by U.S. consumers over a scandal about fake accounts its employees set up for customers without their knowledge. But the trouble continues for the financial institution, which has received a dim evaluation from a federal regulator.
SCOTUS Won’t Revive Settlement in Interchange Case
A legal battle between merchants and payment networks over interchange fees that has been raging for more than a decade will continue now that the Supreme Court has declined to restore a $5.7 billion settlement agreement that was tossed out by a lower court.
Federal Judge Dismisses CFPB Suit against Payments Processor
A federal judge has dismissed an unfair practices lawsuit filed by the CFPB against a North Dakota-based payment processor. The federal agency had accused Intercept Corp. of permitting unauthorized and other illegal withdrawals from consumer accounts by its clients.
Responsibility isn’t about rules
What can banks learn from the fintech community when it comes to fostering a culture of innovation against a backdrop of regulation?
Automation in US banking – part 2
Art Gillis, a seasoned banking technology consultant (working in the computer industry since 1958 – and listed as a top 25 tech consultant by the American Banker) and author, presents his latest “Automation in Banking” report (#31!), which looks at the US core banking and ancillary software market.
Will the CFPB’s Proposed Six-Month Effective Date Extension Be Enough?
In a Notice of Proposed Rulemaking, the CFPB proposed pushing back the effective date of the final prepaid accounts rule to April 1, 2018. The six-month delay provides industry participants more time to handle the difficulties of complying with certain provisions of the rule and for the CFPB to assess whether any additional adjustments to the rule are appropriate. Comments are due by April 5, 2017.
SEC Says ‘No’ to Winklevoss Bitcoin Exchange-Traded Fund
The Securities and Exchange Commission denied the application of Internet entrepreneurs and venture capitalists Cameron and Tyler Winklevoss to create an exchange-traded fund for the virtual currency bitcoin.
DOJ Weighs in on CFPB Leadership Case, Calls for Changes to Dodd-Frank
The Department of Justice files an amicus brief filed with the D.C. Circuit Court of Appeals arguing that the president should have the authority to fire the head of the CFPB, but stopped short of calling for the bureau’s leadership format to be changed.
CFPB Stares down another D.C. Challenge
House bill 1009 would require the CFPB and other independent federal agencies to submit regulations annually to a White House office for review, in the latest push to reform the CFPB and otherwise reduce regulatory burdens for the financial and payments industry under the Trump administration.
Mutual distributed ledger: at the speed of need
Professor Michael Mainelli, executive chairman of Z/Yen Group, and Vinay Gupta, founder of venture capital firm hexayurt.capital, discuss mutual distributed ledger economics.
Illinois Regulator Joins Global Virtual Currency Consortium
The Illinois Department of Financial and Professional Regulation has become the first U.S. regulatory agency to join the R3 Consortium, a global partnership of banks and other parties working to develop distributed ledger-based applications for financial services. The agency oversees the regulation and licensing of banks and financial institutions, among other businesses, in the state.
Wells Fargo Faces New Pressure from Top Democrat over Fake Accounts
The top Democrat on the U.S. House Financial Services Committee wants to interview executives from Wells Fargo over a scandal about fake accounts its employees set up for customers. Last year, the CFPB announced a $100 million fine against Wells Fargo for what the agency called “widespread unlawful sales practices.” The agency said the fine was the largest such penalty it has ever issued.
Automation in US banking – part 1
Art Gillis, a seasoned banking technology consultant (working in the computer industry since 1958 – and listed as a top 25 tech consultant by the American Banker) and author, presents his latest “Automation in Banking” report (#31!), which looks at the US core banking and ancillary software market.
Under Renewed Fire, the OCC Moves Forward with its Fintech Charter Plan
The Office of the Comptroller of the Currency is moving forward with its plan to enable fintech companies to become special purpose national banks (SPNBs), releasing a licensing manual draft supplement which provides guidance on how the OCC “will apply the licensing standards and requirements in its existing regulations and policies to fintech companies applying for [SPNB] charters“ and another document that summarizes public comments about the plan to allow SPNBs for fintech companies. The special purpose charter has no shortage of critics, but perhaps the most vocal—New York State—has turned up the dial on its opposition.
The Bancorp Hires Neurohr to Lead Compliance
With federal and state payments regulation in near-constant flux, compliance strategy continues to be of utmost importance, especially for issuers. Amid this landscape, The Bancorp has named Bill Neurohr to head its compliance operations and serve as the point man for the company’s interactions with regulators.
Analysis: banking innovation in the US
Banking Technology puts the banking innovation in the US under the spotlight. The market is not short of digital offerings: Simple, Moven, Kabbage, Acorns, Earny, Debitize, MagnifyMoney and more – take your pick!
CFPB Proposes Delay, Potential Tweaks on Prepaid Rule
Prepaid stakeholders scrambling to meet the Oct. 1, 2017, effective date for the CFPB’s final rule on prepaid accounts can take a breath. The CFPB has proposed delaying the effective date by six months—and has signaled it might be open to tweaking some aspects of the rule.
CFPB Issues Guide on Preparing Short-Form Disclosures for Prepaid Accounts
The CFPB, on March 7, released a guide for preparing short-form disclosures for prepaid accounts, which is intended to assist providers with implementing the agency’s final rule on prepaid accounts issued last year and set to go into effect Oct. 1, 2017.
Abu Dhabi, Singapore to Promote Fintech Innovation
The Monetary Authority of Singapore (MAS) and Abu Dhabi Global Market (ADGM) have signed an agreement to assist fintech entrepreneurs and support financial services innovation in Singapore and Abu Dhabi, according to Paybefore sister publication Banking Technology.
More Incentives! That’s What Mobile Wallet Users Want, New Study Says
Payments pundits for years have been saying consumers need incentives to use mobile wallets, and a new survey report from Auriemma Consulting Group has numbers to back up the claim.
Emerging Payments a Hot Topic on Social Media, Study Finds
Consumers are expressing interest in and enthusiasm for emerging payment methods in their social media conversations, according to a new report. Mastercard’s fifth annual Digital Payments Study analyzed more than 3.5 million public interactions in 2016 between consumers on social media channels—including Facebook, Instagram and Twitter—to glean insight about consumer attitudes toward new payment technologies worldwide.
Payments: looking down the regulatory pipeline
In the immediate aftermath of the 2007/8 financial crisis, measures to promote better conduct and improve customer protection and the resilience of the financial system dominated the regulatory agenda. More recently, regulators in many countries have added competition and innovation objectives to their agenda.
Prepaid Complaints Remain Low in Latest CFPB Monthly Snapshot
Complaints about prepaid products went down again from November 2016 through January 2017, with the CFPB reporting a monthly average of 206 prepaid-related complaints in that period, down from 237 per month during the same period a year earlier.
Survey Finds Payment Schemes Worldwide Optimistic, Looking to Cooperate
Developing new services, adopting the latest technologies and collaboration are the top priorities among payment schemes worldwide, according to a new study.
Study: Big Box Stores, Plastic Cards Dominate in Loyalty, Corporate Rewards
In a sign that many consumers use gift cards to purchase everyday household items, big box retailers continue to lead loyalty points and rewards redemptions in the U.S., according to a new study from the National Gift Card Corp. (NGC).
Cybersecurity: computers or humans – where does the threat lie?
Digitalisation plays a key role in the fight against payment fraud. Yet Commerzbank’s cybercrime specialists in cash services show that even in this technologically advanced environment, security threats persist. Companies must take steps to ensure that human beings – as well as computers – are protected against crime.
APRA’s EFS Form Review consultation: first stage of a long road
On 16 January 2017, the Australian Prudential Regulatory Authority (APRA) released for public consultation its Economic and Financial Statistics (EFS) Form Review. Notably, this consultation package represents a major overhaul of many of the financial and statistical returns currently prepared by the Australian authorised deposit-taking institutions (ADIs) as well as introducing a new set of returns to be submitted. We examine what’s at stake.
European Online Transaction Rule Revised after Payments Industry Complaints
After absorbing hundreds of complaints from the payments industry, the European Banking Authority will relax its pending customer authentication rules for online transactions. But given the rise in popularity of online shopping, the new threshold of 30 euros before two-factor authentication is required may not be enough to assuage industry concerns.
Innovators’ Spotlight: Raise
The Chicago-based startup enables consumers to easily purchase and redeem e-gift cards right from their smartphones, essentially turning unwanted e-gifts into a convenient and useful form of digital currency.
Mobile payments in the age of the customer
The mobile payment market is getting more congested every day. For banks, it’s the most frequent touchpoint – one that can help (re) establish everyday relevance and drive engagement. How can banks develop their strategy and prioritise the capabilities that will help them remain valuable to their customers?
N.Y. Grants Global Cash Card Petition against Labor Dept. Paycard Regs
Payroll card providers that operate in New York can breathe a huge sigh of relief. Global Cash Card tells Paybefore that its petition against the New York Department of Labor payroll card regulations due to go into effect on March 7, 2017, has been granted. The industry had been raising red flags about the regulations, which many feared would result in providers exiting the market, since first proposed in 2015.
CFPB Seeks Help in Tackling Thin-, No-File Challenge
In a Feb. 16 field hearing, the CFPB said it wants industry input on using alternative data to help thin- or no-file consumers build credit scores. It’s a challenge that many in the prepaid industry have been trying to solve for years to better serve cardholders who often are among the approximately 26 million U.S. consumers who don’t have a credit history and another 19 million consumers whose credit histories are insufficient to produce a credit score, according to CFPB estimates.
